Nayara Energy Challenges EU Sanctions in Delhi Court Over SAP Software Support
Govt says EU sanctions not recognized in India: Nayara Energy to Delhi High Court
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Nayara Energy Ltd, backed by Russia's Rosneft, is contesting SAP India's decision to halt software support due to EU sanctions, arguing it undermines India's sovereignty. The Delhi High Court's ruling could impact how global tech firms navigate local laws amid international sanctions. The next hearing is scheduled for April 27.
- 01Nayara Energy claims SAP's withdrawal of support violates Indian law and threatens national security.
- 02The company supplies 8.5% of India's energy, highlighting the stakes involved in the court's decision.
- 03Nayara argues that contracts governed by Indian law should not be affected by EU sanctions.
- 04SAP maintains compliance with EU law is necessary, regardless of local contractual obligations.
- 05The outcome may set a precedent for how global tech firms interact with sanctioned entities.
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Nayara Energy Ltd, an Indian refiner with significant backing from Russia’s Rosneft, has filed a petition in the Delhi High Court against SAP India, which has ceased software support citing European Union sanctions. Nayara's counsel, Dayan Krishnan, argued that this decision compromises the company's operations and national security, as it is unable to receive critical software updates necessary for compliance with Indian regulations. The company contends that since its contracts with SAP are governed by Indian law and payments are made in Indian currency, SAP's actions lack legal standing. Nayara, which contributes 8.5% of India's energy supply, asserts that the withdrawal of services poses a serious risk to India's sovereignty. The Indian Ministry of External Affairs has expressed support for Nayara's position, stating that India does not recognize unilateral sanctions. The court's decision, expected in the next hearing on April 27, could influence how global technology firms navigate local laws when faced with international sanctions.
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If Nayara Energy wins, it could ensure that critical software support continues, safeguarding India's energy security and operational integrity.
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